Speculators Play an Important Role in a System of Floating

question 52

Multiple Choice

Speculators play an important role in a system of floating exchange rates because

• A)to make a profit, they must buy a currency when its value is low and sell it when its value is high.
• B)their purchases and sales lead to wild gyrations in exchange rates and thus increase instability.
• C)they place additional risks on businesses that need to purchase and sell foreign currency.
• D)All of the above are correct.

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Definitions:

Posttraumatic Stress Disorder

A psychological disorder that arises after exposure to or being part of a distressing event, leading to intense stress, recurring nightmares, and vivid flashbacks.

Phobic Disorder

A psychiatric condition characterized by an irrational and excessive fear of an object, place, situation, or activity leading to avoidance behavior.

Sexual Promiscuity

Engagement in sexual activities with multiple partners or the frequent changing of sexual partners without following monogamy.

Multiple Children

Refers to a family unit having more than one child, which may influence the dynamics, parenting styles, and resources allocation within the family.